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U.S. Electric Vehicle Market Size - By Propulsion, By Vehicle, By Drivetrain, By Battery, By Range, By Price Range, By End-Use, Analysis, Share, Growth Forecast, 2025 - 2034

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U.S. Electric Vehicle Market Size

The U.S. electric vehicle market size was valued at USD 119.8 billion in 2024 and is projected to grow at a CAGR of 13.7% between 2025 and 2034. The investments by the US government towards electric vehicles are indeed driving the market. The example of the USD 1.7 billion investments made in July 2024 by the US government on electrical vehicle manufacturing plants serves this purpose well. Such retrofitting activities are expected to modify infrastructure at 11 vehicle manufacturing plants in the region. This initiative will also create thousands of job opportunities for auto workers.
 

U.S. Electric Vehicle Market

The growing interest in EVs in the US is fueling the favorable EV market growth. For this reason, new models are being developed by manufacturers. For instance, during September 2023 Hyundai launched an off-road capable EV IONIQ 5 XRT. This new model features dual motor (AWD only) + 84 kWh battery, +23mm suspension lift, and 235 / 60 R 18 all-terrain tires. Enhanced driving range improves performance and safety of vehicles.

The XRT is integrated with Tesla's North American Charging Standard (NACS) port that allow it to access around 17,000 Tesla Supercharger stations. These charging stations provide port for both DC and AC type charging in one single plug and assist up to 1MW of power on DC type charging. Additionally, to gain business position manufacturers are introducing new EV models, enhancing battery capacity, and integrating new technologies.
 

U.S. Electric Vehicle Market Trends

  • Industry expansion is expected to pick up speed due to the coming of new technologies in electric vehicles like Vehicle-to-Grid (V2G), Advanced Driver-Assistance Systems (ADAS) and advanced battery management systems.
     
  • The global vehicle to grid marketplace is valued at USD 3.1 billion as of 2023, and it is expected to outperform other markets with a CAGR of 50% growth from 2024 to 2032.
     
  • For instance, the latter example indicates that the San Diego Gas and Electric Company and Toyota Motor Company had partnering strategies in 2023 for V3G integration purposes. These efforts are being done to tackle the satisfaction of market needs. Together they will undertake research on BEV’s while utilizing the Toyota bZ4x.
     
  • For precise energy estimation, the BMS depends on intelligent battery sensing units that feed it with accurate charge/temperature figures. This system is devised to provide efficient protection against the risks of overcharge and thermal runaway as well as against undercharge and deep discharge.
     
  • The global market for Battery Management Systems (BMS) is estimated to exceed USD 4 billion by 2024, and it is expected to grow at a compound annual growth rate of 17.4%, from 2025 to 2034.
     
  • To enhance the safety of drivers, OEMs are now incorporating Advanced Driver Assistance Systems into their vehicles. It has multiple cameras, sensors, and other equipment that enhances drives throughout the duration of a trip.
     
  • Understanding the evolution of the U.S. electric vehicle market, the businesses have developed strategies in order to meet the increasing market services. For example, Uno Minda recently incorporated the features of Advanced Driver Drowsiness Detection Room Level 2 that became available in November 2024. It adds to the safety with the aid of vehicular robotics surveillance which has an alerting device in case a reasonably perceived amount of danger comes within range.
     

U.S. Electric Vehicle Market Analysis

U.S. Electric Vehicle Market Size, By Propulsion, 2022-2034, (USD Billion)

Based on propulsion, the U.S. EV market is divided into BEV, HEV, PHEV, FCEV. In 2024, the BEV segment dominates the market generating revenue of USD 70 billion and FCEV segment is expected to grow at CAGR of around 15% during the forecast period.
 

  • The advancements in battery technology include high energy density, fast charging, and long-life span are supporting the growth of BEV segment. These enhanced features made these vehicles more attractive to consumers.
     
  • To cater consumer demand, market players are focusing on the introduction of a new BEV model in the market. For instance, November 2024, The Mahindra launched BE 6e and XEV 9e SUVs. The new electric SUVs offers ADAS Level 2+ for advanced driver safety and a 79-kWh battery pack. With a single change this model is expected to offer an estimated range of around 650 km.
     
  • The new model is equipped with 5G connectivity, three screens, and a Qualcomm Snapdragon chipset to enable AI-based applications. Additionally, it is also integrated with the Harman Kardon sound system with 16 speakers.

 

U.S. Electric Vehicle Market Share, By Vehicle, 2024

Based on vehicle, the U.S. electric vehicle market is segmented into two-wheeler, passenger car and commercial vehicle. In 2024, the passenger car dominates the market with 75% of market share and is expected to grow at CAGR of over 14% from 2025 to 2034.
 

  • The construction of EV charging places in California, Washington, and Florida at an impressive rate is increasing the expansion of the passenger car market.
     
  • The EV charging infrastructure on the other hand is receiving attention both from the government and the private companies leading to increase in CAGR compared to other highly developed economies.
     
  • As an example, in September 2024, the US government contributed USD 521 million towards the installation of charging infrastructure in 29 states. This is part of the fiscal policy of the Biden-Harris administration which aims towards broadening the electric vehicle charging network.
     
  • The expansion of the ultra-fast public charging network in the region minimizes the charging durations of the EVs, hence offering drivers great convenience.
     

Based on batteries, the U.S. electric vehicle market is segmented into sealed lead acid, Nickel Metal Hydride (NiMH), and Lithium-ion batteries, with the lithium-ion category expected to take the lead in the market due to their numerous advantages like high energy density, fast charging capabilities and longer lifespan.
 

  • Tesla, BMW, and Renault are incorporating lithium-ion batteries in their electric vehicles, due to their improved charging cycles that result in lowered expenses. Aside from this, to maintain and support anticipated growth in the market, companies are working around the clock to introduce new batteries to the market.
     
  • For instance, in December 2024, Stellantis adjoined with Zeta Energy to commence research on EV lithium-sulfur EV batteries. The company plans to build sulfur batteries using waste materials and methane. 

 

U.S. Electric Vehicle Company Market Share, 2024
  • In 2024, California dominates the U.S. electric vehicle market with around 35% market share and generates around USD 29.6 billion in revenue. The state’s market growth is driven by its strong environmental policies and robust EV infrastructure.
     
  • Installing new restrictions on negative emissions powers California residents to purchase zero-emission vehicles. for example, in October 2023, the California government passed the Advanced Clean Cars II regulations. With this regulation, the state aims to have all new vehicles sold to be zero-emission by the year 2035.
     
  • The government of California provides various benefits such as rebates and tax credits which help in making electric vehicles more affordable. One such unprecedented opportunity is the California Clean Vehicle Rebate Project (CVRP) which is all set to reward people with financial incentives for lease or purchase of new zero-emission vehicles.
     
  • The slow but persistent expansion of the EVs logistics charging infrastructure is resulting in additional development in the Texas U.S. electric vehicle (EV) market. For example, the Joint Office of Energy and Transportation opened the first electric vehicle charging station in Texas in December 2024. More vehicles will be supported by the located charging station which provides CCS and J3400 connectors.
     
  • Moreover, changes which are more friendly to the environment are also stimulating growth in the Texas U.S. electric vehicle market. Governmental institutions are forming new policies focusing on reducing carbon and promoting clean energy.
     
  • For example, the City of Gainesville was awarded $11.65 million from the federal Charging and Fueling Infrastructure CFI Program in January 2025, and the grant is intended to assist with construction of 47 new EV charging stations in the region. Similar to Florida, the government is beginning to allocate more resources for charging infrastructure.
     

U.S. Electric Vehicle Market Share

  • Top 7 companies of U.S. EV market are Tesla, Ford, Mercedes-Benz, BMW, Hyundai, Chevrolet, and Volkswagen holding around 63% of the market in 2024.
     
  • Tesla is gaining a market position through continuous innovation in vehicles. The company is known for its highly sold Tesla Model Y. According to Statista, in 2023, Tesla sold around 1.2 million units of Tesla Model Y. Additionally; by investing in Gigafactories the company is enhancing production efficiency and scalability.
     
  • Ford has been stepping up its game in the electric vehicle space with the release of outraged models like the Mustang Mach E and F-150 Lightning. The price of The Mustang Mach-E starts at 43,900 dollars and it has a range of 320 miles. Additional features of the vehicle include RWD, 91 kWh usable battery capacity, and primary eMotor (Rear). Moreover, The F-150 Lightning is priced at 62,900 dollars. It has a range of 320 miles and boasts 580 horsepower with 775 Lb.-Ft. torque.
     
  • For Mercedes-Benz, the major focus is almost exclusively on increasing its EQ lineup, in particular EQS and EQA. With the vehicles come additional technology, premium interiors, and extended range capabilities. The benz EQS with an additional feature of 107.8 kWh gives 855Nm of maximum torque with a range of 857 km. The firm is also increasing its electric vehicle production at the same time as increasing its investments in battery technology and charging infrastructure.
     

U.S. Electric Vehicle Market Companies

Major players operating in the U.S. Electric Vehicle industry are:

  • BMW
  • Chevrolet
  • Ford
  • Hyundai
  • Lucid Motors
  • Mercedes-Benz
  • Nissan
  • Rivian
  • Tesla
  • Volkswagen
     

Market leaders are constantly capitalizing on different market opportunities such as formations of partnerships and collaboratives, mergers and acquisitions, new launches and innovations, investment in research and development and so on. This is useful as it allows the integration of new features and technologies relevant to vehicles. Similarly, manufacturer merging or acquiring other forces in the market allows for improved business reach, resources, and innovation into their offerings.
 

In an effort to stay relevant in the competitive market, large businesses are pouring investment into research and development. R&D investment allows companies to facilitate growth in innovation within industry. For example, in May 2024 Honda invested approx. USD 7.6 billion into R&D towards electric vehicles. Compared to last year, there is a 23% increase in investment. Companies are also introducing new products to strengthen their product mix.
 

U.S. Electric Vehicle Industry News

  • In July 2024, Uber Technologies reported scaling cooperation with BYD for 100,000 new BYD EV's to be put on the Uber platform. Other future cooperating plans involve implementing BYD autonomous-capable vehicles on the Uber platform. The companies are planning to provide incentives in the form of cheaper charging, maintenance, and insurance for increased adoption of EV.
     
  • In June 2024, seven automakers, namely BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, and Stellantis, announced a new business collaboration to develop an EV charging network across North America. Through this venture a charging network consisting of 30,000 chargers will be set up. All battery-powered EV users using Combined Charging System (CCS) or North American Charging Standard (NACS) will be able to access the new charging stations together with the U.S. National Electric Vehicle Infrastructure (nevi) Program.
     
  • In January 2024, Tesla announced a production plan of compact and affordable electric cars. The company is planning to start production of new models by June 2025. These new models include an entry-level USD 25,000 car. The company will continue developing self-driving robotaxis on the same small-vehicle platform
     

The U.S. electric vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipment (Units) from 2021 to 2034, for the following segments:

Market, By Propulsion

  • BEV
  • HEV
  • PHEV
  • FCEV

Market, By Vehicle

  • Two-wheelers
    • Motorcycles
    • E-bikes 
  • Passenger Cars
    • Sedan
    • SUV
    • Hatchback
    • Others
  • Commercial Vehicles
    • Light
    • Medium
    • Heavy

Market, By Drivetrain

  • Front-wheel drive
  • Rear-wheel drive
  • All-wheel drive

Market, By Battery

  • Sealed Lead Acid
  • Nickel Metal Hydride (NiMH)
  • Lithium Ion

Market, By Range

  • Less than 100 km
  • 100 km-200 km
  • 200 km to 300 km
  • Above 300 km

Market, By Price Range

  • Below USD 10,000
  • USD 10,000 to USD 30,000
  • USD 30,000 to USD 50,000
  • Above USD 50,000

Market, By End Use

  • Personal
  • Commercial
    • Government
    • Private

The above information is provided for the following regions:

  • US
    • Alabama
    • Alaska
    • Arizona
    • Arkansas
    • California
    • Colorado
    • Florida
    • Georgia
    • Idaho
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Kentucky
    • Louisiana
    • Maine
    • Michigan
    • Minnesota
    • Mississippi
    • Missouri
    • Montana
    • Nebraska
    • Nevada
    • New Mexico
    • North Carolina
    • North Dakota
    • Ohio
    • Oklahoma
    • Oregon
    • Pennsylvania
    • South Carolina
    • South Dakota
    • Tennessee
    • Texas
    • Utah
    • Virginia
    • Washington
    • West Virginia
    • Wisconsin
    • Wyoming

 

Authors: Preeti Wadhwani,
Frequently Asked Question(FAQ) :
How much of the U.S. electric vehicle market did California account for in 2024?
California accounted for 35% of the U.S. electric vehicle market revenue in 2024, due to its forward-thinking environmental policies and robust EV infrastructure.
Who are the major players in the U.S. electric vehicle industry?
What share did passenger cars segment hold in the U.S. electric vehicle industry?
How big is the U.S. electric vehicle market?
U.S. Electric Vehicle Market Scope
  • U.S. Electric Vehicle Market Size
  • U.S. Electric Vehicle Market Trends
  • U.S. Electric Vehicle Market Analysis
  • U.S. Electric Vehicle Market Share
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    Base Year: 2024

    Companies covered: 18

    Tables & Figures: 230

    Countries covered: 1

    Pages: 190

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